Compute the present value of $5,800 paid in two years using the following discount rates: 7...
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Compute the present value of $5,800 paid in two years using the following discount rates: 7 percent in the first year and 6 percent in the second year. (Do not round intermediate calculations and round your answer to 2 decimal places.) |
Homework Answers
Present value:
= Future value/((1+r1)*(1+r2))
= $5,800/((1+7%)*(1+6%))
= $5,113.74
Hence, present value is $5,113.74
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